Final Results Announcement for the Year Ended 31 December 2019

Hong Kong Exchanges and Clearing Limited and The Stock Exchange of Hong Kong Limited take no responsibility for the contents of this announcement, make no representation as to its accuracy or completeness and expressly disclaim any liability whatsoever for any loss howsoever arising from or in reliance upon the whole or any part of the contents of this announcement. (Incorporated in Bermuda with limited liability) (Stock Code: 1003) FINAL RESULTS ANNOUNCEMENT FOR THE YEAR ENDED 31 DECEMBER 2019 The board of directors (the “Board”) of Huanxi Media Group Limited (the “Company”) announces the consolidated results of the Company and its subsidiaries (the “Group”) for the year ended 31 December 2019, together with comparative figures for the year ended 31 December 2018, as follows: CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME For the year ended 31 December 2019 2019 2018 NOTE HK$’000 HK$’000 Revenue and film investment income 5 814,425 174,632 Cost of revenue 11 (470,915) (85,317) Gross profit 343,510 89,315 Other income 7 21,371 42 Other losses 8 (2,306) (346) Selling and distribution costs 11 (43,274) (25,958) Administrative expenses 11 (132,983) (203,521) Share-based payment for cooperation with a film director 22 – (270,000) Operating profit/(loss) 186,318 (410,468) * For identification purposes only 1 2019 2018 NOTE HK$’000 HK$’000 Finance income 9 3,036 701 Finance costs 9 (3,170) (16,497) Finance costs, net 9 (134) (15,796) Profit/(loss) before tax 186,184 (426,264) Income tax expense 10 (81,081) (18,429) Profit/(loss) for the year 105,103 (444,693) Profit/(loss) for the year attributable to owners of the Company 105,103 (444,693) Other comprehensive (loss)/income Item that will not be reclassified to profit or loss: Exchange differences arising on translation of functional currency to presentation currency (7,195) 5,028 Item that may be reclassified to profit or loss: Exchange differences on translation of foreign operations (22,776) (49,202) (29,971) (44,174) Total comprehensive income/(loss) for the year 75,132 (488,867) Total comprehensive income/(loss) for the year attributable to owners of the Company 75,132 (488,867) Earnings/(loss) per share for profit/(loss) attributable to owners of the Company Basic and diluted (HK dollar) 13 0.03 (0.16) 2 CONSOLIDATED STATEMENT OF FINANCIAL POSITION At 31 December 2019 2019 2018 NOTE HK$’000 HK$’000 NON-CURRENT ASSETS Property, plant and equipment 4,571 3,762 Right-of-use assets 36,097 – Intangible assets 11,294 16,285 Deposits and prepayments 16 105,198 5,608 Prepayments for film and TV programmes rights 14 362,707 370,222 Film and TV programmes rights 15 118,438 18,077 638,305 413,954 CURRENT ASSETS Film and TV programmes rights 15 803,514 744,542 Trade and other receivables, deposits and prepayments 16 155,120 371,305 Contract assets 17 2,364 5,220 Cash and cash equivalents 256,203 158,528 1,217,201 1,279,595 Total assets 1,855,506 1,693,549 EQUITY Share capital 31,547 29,181 Reserves 1,098,683 629,487 Total equity 1,130,230 658,668 NON-CURRENT LIABILITY Lease liabilities 20,997 – CURRENT LIABILITIES Trade and other payables 18 93,860 98,025 Film investment funds from investors 19 188,634 – Contract liabilities 17 279,250 528,652 Amounts due to related parties 20 – 92,467 Borrowings 21 50,000 295,307 Lease liabilities 15,897 – Tax payable 76,638 20,430 704,279 1,034,881 Total liabilities 725,276 1,034,881 Total equity and liabilities 1,855,506 1,693,549 3 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS For the year ended 31 December 2019 1. GENERAL The Company was incorporated in Bermuda as an exempted company with limited liability and its shares are listed on the Main Board of The Stock Exchange of Hong Kong Limited (the “Stock Exchange”). The Company is an investment holding and film investment company and its subsidiaries are principally engaged in the media and entertainment related businesses which include development and investment in film and TV programmes rights and operation of streaming platform. These consolidated financial statements of the Company and its subsidiaries are presented in Hong Kong dollars (“HK$”), unless otherwise stated. 2. BASIS OF PREPARATION OF CONSOLIDATED FINANCIAL STATEMENTS (a) Compliance with HKFRSs and HKCO The consolidated financial statements have been prepared in accordance with Hong Kong Financial Reporting Standards (“HKFRSs”) and requirements of the Hong Kong Companies Ordinance (“HKCO”) Cap. 622. (b) Historical cost convention The consolidated financial statements have been prepared on a historical cost basis, except for certain financial assets and liabilities measured at fair value. (c) New and amended standards adopted by the Group The Group has applied the following standards and amendments for the first time for their annual reporting period commencing 1 January 2019: Annual Improvement projects Annual improvements 2015 – 2017 Cycle (Amendments) HKAS 19 (Amendments) Plan amendment, curtailment or settlement HKAS 28 (Amendments) Long-term interests in associates and joint ventures HKFRS 9 (Amendments) Prepayment features with negative compensation HKFRS 16 Leases HK(IFRIC)-Int 23 Uncertainty over income tax treatments The Group had to change its accounting policies but no retrospective adjustments were resulted following the adopting HKFRS 16. The impact of adoption is disclosed in Note 3. Most of the other amendments listed above did not have any impact on the amounts recognised in prior periods and are not expected to significantly affect the current period. 4 (d) New standards and interpretations not yet adopted Certain new accounting standards and interpretations have been published that are not mandatory for 31 December 2019 reporting periods and have not been early adopted by the Group. These standards are not expected to have a material impact on the entity in the current or future reporting periods and on foreseeable future transactions. Effective for annual periods beginning on or after HKAS 1 and HKAS 8 Definition of material 1 January 2020 (Amendments) HKFRS 3 (Amendments) Definition of business 1 January 2020 Conceptual Framework for Revised conceptual framework 1 January 2020 Financial Reporting 2018 for financial reporting HKFRS 17 Insurance contracts 1 January 2021 HKFRS 10 and HKAS 28 Sale or contribution of assets To be announced (Amendments) between an investor and its associate or joint venture 3. CHANGES IN ACCOUNTING POLICIES This note explains the impact of the adoption of HKFRS 16 Leases on the Group’s consolidated financial statements. As indicated in Note 2 above, the Group has adopted HKFRS 16 Leases retrospectively from 1 January 2019, but has not restated comparatives for the 2018 reporting period, as permitted under the specific transition provisions in the standard. The reclassifications and the adjustments arising from the new leasing rules are therefore recognised in the opening statement of financial position on 1 January 2019. On adoption of HKFRS 16, the Group recognised lease liabilities in relation to leases which had previously been classified as ‘operating leases’ under the principles of HKAS 17 Leases. These liabilities were measured at the present value of the remaining lease payments, discounted using the lessee’s incremental borrowing rate as of 1 January 2019. The lessee’s incremental borrowing rate applied to the lease liabilities on 1 January 2019 was 3.82%. (a) Practical expedients applied In applying HKFRS 16 for the first time, the Group has used the following practical expedients permitted by the standard: • applying a single discount rate to a portfolio of leases with reasonably similar characteristics • relying on previous assessments on whether leases are onerous as an alternative to performing an impairment review – there were no onerous contracts as at 1 January 2019 5 • accounting for operating leases with a remaining lease term of less than 12 months as at 1 January 2019 as short-term leases • excluding initial direct costs for the measurement of the right-of-use asset at the date of initial application; and • using hindsight in determining the lease term where the contract contains options to extend or terminate the lease. The Group has also elected not to reassess whether a contract is, or contains a lease at the date of initial application. Instead, for contracts entered into before the transition date the Group relied on its assessment made applying HKAS 17 and Interpretation 4 Determining Whether an Arrangement Contains a Lease. (b) Measurement of lease liabilities HK$’000 Operating lease commitments disclosed as at 31 December 2018 35,577 Discounted using the lessee’s incremental borrowing rate of at the date of initial application (2,134) Short-term leases not recognised as a liability (3,540) Lease liabilities recognised as at 1 January 2019 29,903 Of which are: – Current lease liabilities 8,899 – Non-current lease liabilities 21,004 29,903 (c) Measurement of right-of-use assets The associated right-of-use assets were measured at the amount equal to the lease liabilities, adjusted by the amount of any prepaid or accrued lease payments relating to that lease recognised in the consolidated statement of financial position as at 31 December 2018. There were no onerous lease contracts that would have required an adjustment to the right-of-use assets at the date of initial application. (d) Adjustments recognised in the consolidated statement of financial position on 1 January 2019 The change in accounting policy affected the following items in the consolidated statement of financial position on 1 January 2019: • right-of-use assets – increase by approximately HK$29,903,000; and • lease liabilities – increase by approximately HK$29,903,000 6 4.

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